Rahejas to raise Rs. 5,300-mn PE funds

New Delhi: The New Delhi-based Raheja Developers plans to raise Rs 530 crore from a private equity (PE) firm for its upcoming engineering special economic zone (SEZ) at Gurgaon. It will offload a 26 per cent stake in the SEZ to the PE fund.

Raheja Developers MD Navin Raheja said, “The company is in talks with private equity firms such as Royal Group of Abu Dhabi, Ford Capital, Ascendas, Blackstone as well as Carlyle for selling 26 per cent (worth Rs 530 crore) stake in the upcoming SEZ. We have appointed Ernst & Young as consultant.”

“We would like to give first preference to Royal Group of Abu Dhabi as they have bigger projects such as construction of township in Dubai. They have better construction techniques, equipment and manpower. But the deal is yet to be finalised,” Raheja said.

The private equity investor will be a strategic partner in the engineering SEZ. “The joint venture will be in the form of a special purpose vehicle which will be listed later on,” Raheja added.

The company plans to invest Rs 4,535 crore approximately in the SEZ to be funded with a mix of equity, debt and internal accruals.

The company also plans to construct the tallest building in the country at the SEZ, as claimed by it.

“We are looking for appropriate partner who can bring in better technology and machinery to construct over 100-storied earthquake- resistant building. We would prefer Japanese companies since they have expertise in constructing over 100-storied earthquake-resistant building with the help of oscillating weights,” Raheja added.

Since Haryana is grappling with power supply, the company is also planning to set up a 200 mw captive power plant in the Gurgaon SEZ. The company is in talks with companies such as Lanco and Adani for setting up the power plant.

The project has the potential to generate approximately 2,00,000 jobs in the coming 10 years.

The company has also promised jobs to two persons from each family of a farmer from whom the land is acquired. Revenue from the 257.5 acre engineering SEZ is estimated to cross Rs 50,000 crore in coming years.